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Home My WebLink AboutR-79-083930 RFC/wpc 11/30/79 RESOLUTION NO. 7 9- 8 3 9 A RESOLUTION APPROVING AND AUTHORIZING THE PREPARATION AND DELIVERY OF AN AGREEMENT BETWEEN THE CITY AND MIAMI WORLD TRADE CENTER ASSOCIATES, LTD., AS DEVELOPERS OF THE AIR RIGHTS OF THE CONVENTION CENTER GARAGE INTO A WORLD !t TRADE CENTER, AND WHICH PROVIDES FOR RESTORING FIRST !Mr...-. nirREFUSAL RIGHTS TO MIAMI CENTER ASSOCIATES, INC. IF THIS s,.,: i .r (,PROPOSED AGREEMENT IS NOT EXECUTED WITHIN TWO MONTHS. r, ')1L; 3VV1) 'f WHEREAS, pursuant to Ordinance No. 7221, adopted by the City Commission on July'l, 1964, and the approval of the voters of the City at an election held September 29, 1964, the bonds of the City in the principal amount of $4,500,000. were sold and delivered by the City on May 6, 1969, and the proceeds of such bonds, with other funds have been or shall be applied to the payment of. the cost of constructing a convention center for the City, including parking facilities, appurtenances, land and equipment and any necessary clearing, filling in, extending, enlarging or improving the site therefor; and WHEREAS, the City, to enhance the success of the convention center, entered into an agreement dated April 1, 1977 with the University of Miami, a non-profit corporation organized and existing under the laws of the State of Florida (hereinafter referred to as the "University") wherein the University agreed to lease and operate a conference center as a part of the convention center (said conference center being herein designated the "Conference Center" and said convention center and conference center, collectively, being desig- nated "City of Miami/University of Miami James L. and herein called the "Convention Center");. and WHEREAS, said agreement, among other things, Knight International Center" "DOCUMENT �INDEX IT EM I�'�. : � provides that t e University shall make available $2,500,000 with certain earnings thereon to the City as advance rent for the Conference Center on the condition that the City cause to be constructed a luxury hotel of not less than 250 rooms and a parking garage of approximately 1,000 car capacity to be operated as part of said Convention Center; and WHEREAS, the City on February 16, 1977, by published notice, invited expressions of interest from developers in the development and operation of (1) Phase A consisting of commercial facilities essential for the successful operation of the Convention Center and (2) Phase B consisting of a 1000 car parking garage and development and operation of the air rights thereon; and 7 9- 8 3 9 WHEREAS, pursuant to such invitation, the City considered development proposals of interested parties and accepted the proposal of Miami Center Associates, Ltd.; and WHEREAS, the City Commission, by Resolution No. 78-74 adopted January 24, 1978, accepted the proposals of Miami Center Associates, Ltd. and Miami Center Associates, Inc., authorized the City Manager to execute contracts with Miami Center Associates, Ltd. for the development of Phase A; and Miami Center Associates, Inc. for the right to perform the same construction managing and development functions in regards to Phase B; and WHEREAS, the City entered into a Construction Agreement with Miami Center Associates, Inc. dated April 20, 1978 providing, among other things, for the development of Phase B; and WHEREAS, on November 26, 1979.by Resolution No. 79- the City gave Miami Center Associates, Inc. notice of its intention to proceed with develop- ment of Phase B; and WHEREAS, on July 28, 1977,.by Resolution No. 77-619, the City Commission authorized the City Manager to enter into discussions with Miami World Trade Center, Inc., to explore development of a world trade center in the area of the Dallas Park Hotel site, which site is incorporated into and a part of the site for development of Phase B of the hereinbefore described Convention Center complex; and WHEREAS, a joint presentation was made by Miami World Trade Center, Inc. to the City to develop a World Trade Center on the Dallas Park Hotel site; and WHEREAS, a joint presentation was made by Miami World Trade Center, Inc. and Miami Center Associates, Inc. to the City to develop a world trade center on the Dallas Park site; and WHEREAS, on January 18, 1979, by Resolution No. 79-59, the City approved in principal a preliminary development plan andauthorized the City Manager to negotiate with Miami World Trade Center Inc. and Miami Center Associates, Inc. for the joint development of a world trade center atop the Convention Center Garage subject to the City obtaining an Urban Development Action Grant; and WHEREAS, the development plan which was submitted proposed a method whereby the cost of development may be amortized through the leasing of space and management of the operations of the World Trade Center; and 79-839 LEI ( /) L. CL v 0 LL' WHEREAS, Miami World Trade Center, Inc. is an entity under the control of Sefrius Corp. and has designated Sefrius Corp. to undertake such real estate development activities as may be required in order to create a World Trade Center facility in Miami in which Miami World Trade Center, Inc. will implement the World Trade Center functions; and WHEREAS, the City applied for and was awarded an Urban Development Action Grant of $4.99 Million Dollars for the purpose of providing funds to construct on the Dallas Park Hotel site those facilities necessary to develop the air space above the Convention Center Garage; and WHEREAS, Sefrius Corp. and Miami Center Associates, Inc. have organized Miami World Trade Center Associates, Ltd. for the purpose of developing the Miami World Trade Center; and WHEREAS, Miami World Trade Center Associates, Ltd. has agreed to enter into an agreement with Miami World Trade Center, Inc., pursuant to which Miami World Trade Center, Inc. will manage the World Trade Center portion of the building as a qualified and internationally recognized World Trade Center and will use its best efforts to assure the continuing designation of. the World Trade Center Association as authorized to plan for and operate the approved World Trade Center for Miami; and WHEREAS, Miami Center Associates, Inc. will assign its right of first refusal with respect to the Dallas Park Hotel site to Miami World Trade Center Associates, Ltd. which assignment is subject to approval of the City; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The Commission hereby finds, determines and declares that the assignment of the right of first refusal granted by the City to Miami Center Associates, Inc. was within the authority and powers vested in the City under the Constitution and other laws of the State of Florida, includ— ing particularly the Municipal. Home Rule Powers. Act (Chapter 166, Fla. St. Ann., as amended) and the Charter of the City (Chapter 10847, Special Laws of Florida, 1925, as Section 2. The amended) and other applicable laws. Commission hereby finds and determines and declares the assignment of said right of first re Inc. to Miami World Trade Center Associa public interest and the same is approved fusal by Miami Center Associates, tes, Ltd. is desirable and in the subject to the following: 79-839 (a) The terms and conditions upon which the Dallas Park Hotel Air Space shall be leased, constructed and operated shall be: The initial lease term will be for 30 years with two renewal terms of 30 years each with provisions of refurbishing and updating of the air rights structure. The rental payments are as follows: 1) $150,000 per year beginning upon beneficial occupancy of the office tower escalated annually by the change in the. CPI. 2) $150,000 per year derived from World Trade Center leasing activities phased as follows: a) $50,000 per annum upon achievement of 50% occupancy. b) $100,000 per annum upon achievement of 75% occupancy. c) $150,000 per annumupon achievement of 90% occupancy. d) The $150,000 shall be payable in any event after 5 years from 6t oR ,T' I1, !E beneficial occupancy. L-J » 1: I?<: 7 , -(No The $150,000 per annum will escalate based upon the actual. 1.� FOLLOW" percentage increase achieved on an annual basis after the World Trade Center portion of the building has reached 90% occupancy. (b) If City and Miami. World Trade Center Associates, Ltd. are unable to agree upon terms and conditions for construction and operation of a World Trade Center building sufficient to permit construction to commence on the Phase B site within two (2) months from date hereof, this consent to assignment shall termi— nate and the right of first refusal shall exist in Miami Center Associates, Inc. Section 3. It is the intention of the Commission that the City Manager shall, and he is hereby authorized and directed to enter discussions with Miami World Trade Center Associates, Ltd. for preparation of implementing agreements to effectuate and carry out the provisions and purposes of this resolution and to submit such agreements to the City Commission for its approval. Section 4. This resolution shall be effective immediately upon its adoption. PASSED AND ADOPTED this 5_ th day of December. , 19 79 . ATT T: RALP1f G. ONGIE, CITY CLERK APPROVED AS TO CONTENT: JAMES J. LONNULLY, UJEC'1`f D 11tEC'rOR Maurice A. Ferre MAURICE A. FERRE, MAYOR 79-839 PREPARED AND APPROVED BY: /6114,1 ASSISTANT CITY ATTORNEY PREPARED AND APPROVED BY: GEORGE F. KNOX, JR. CITY ATTORNEY ti FLLLOW" 7 9- 8 3 9 :1 TY CJ:' roi JOSEPH R. GRASSIE, City Manager �.:•,,,.fit.-t•�w•�.ul S J. ONNOLLY,// roject ,Director November 30, 1979 t,H, . World Trade Center Development PEFrili:NCE11: VNCLU;3Ut?-a: Two Resolutions It is recommended that notice be given by the City of its intent to proceed with the development of the air rights of the Convention. Center. Garage as a World Trade Center; and that the right of. first refusal granted by the City to Miami Center Associates, Inc. be updated; and that the City Manager be authorized to prepare an agreement for the development of such air rights with Miami World Trade Center Associates, Ltd. The:City Commission approved the preliminary development plan for development of the air rights of the Convention Center Garage as a World Trade Center as presented by Miami Center Associates, :Inc.' (Worsham) and Miami World Trade Center, Inc. (Sefrius) subject to the City receiving an Urban Development Action Grant (UDAG) from the U. S. Department of Housing and Urban Development (HUD). The City has been notified that they are to be the recipient of the UDAG grant for $4.994 Million and the two developers have by letter agreement created anew entity, Miami World Trade Center Associates, Ltd. to develop this project. It is essential that this project proceed expeditiously in order to complete construction of the Convention Center Garage in timely concert with the opening of the Conference/Convention Center and Hotel. 79-839